The Depository Trust and Clearing Corporation (DTCC) has declared that exchange-traded funds (ETFs) linked to Bitcoin (BTC) or cryptocurrencies have no collateral value as an investment.
DTCC, which provides clearing and settlement services to U.S. financial markets, said in an announcement that 100% of digital asset-based ETFs will be subject to a “haircut.”
“No collateral value is given to ETFs or other investment vehicles containing Bitcoin or other currencies.
Since virtual currency is a fundamental investment, it is subject to a 100% haircut. ”
According to the announcement, DTCC's new changes will take effect on April 30, 2024 and will likely impact the value of the company's Collateral Monitor positions.
Once effective, this change means that companies will no longer be able to use Bitcoin or crypto-linked ETFs as collateral when applying for credit or financing through the DTCC.
Digital asset management firm CoinShares announced in March that financial institutions poured a new weekly record $2.9 billion into crypto investment products, primarily driven by Bitcoin ETFs.
On-chain analyst Willy Wu recently told his 1 million followers on social media platform , he said, reaching $2 billion per day, which is comparable to the previous level. A full-fledged bull market.
“This time it should be even higher. The inflow pipe for spot ETFs (exchange traded funds) is noticeably open.
Inflows are measured on-chain, so this includes all investors. It's about 90% accurate. He also shows that ETFs account for about 30% of total flows at this time.
Specifically, we obtain the daily change in entity-adjusted realized capital amount. The entity-adjusted real cap aggregates the price paid for each BTC as it moves to current HODLers, which is a measure of USD stored on the network. ”
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